NPCI plans to integrate AI into UPI
What's the story
The National Payments Corporation of India (NPCI) is considering the integration of artificial intelligence (AI) into its Unified Payments Interface (UPI). NPCI CEO Dilip Asbe said the move is part of a larger strategy to expand UPI's user base. He said, "AI will be used very effectively when we look at the next wave of UPI, and that includes all aspects, including reaching new users."
AI integration
Voice assistants could simplify onboarding to UPI platforms
Asbe also hinted that voice assistants could simplify user onboarding onto UPI platforms. He said, "We must use AI to look at the voice and multilingual solutions to make onboarding simpler." This comes after NPCI launched a voice assistant-based interactive system in 2023, although it hasn't gained much traction yet.
AI applications
AI can help provide credit, combat frauds
Asbe also highlighted the potential of AI in providing credit to users and merchants with digital footprints. He said, "AI must also be used to provide credit to all the users and merchants who have digital footprints." The NPCI chief also stressed on using AI tools as a shield against online transaction fraud.
AI model development
Need for small language models in India
Asbe also advocated for Indian banks and fintechs to develop small language models, given the rich data set in the country's financial ecosystem. He said, "I think there is a big opportunity for Indian companies - the banks, FinTechs, and the ecosystem - to create small language models which are sharp, specific, and as deterministic as possible."
Regulatory measures
Update on NPCI's dispute-resolution model and UPI market share cap
Asbe also revealed that NPCI's dispute-resolution model, FIMI, launched last year, is already serving over a million users for mandate cancellations. He also spoke about the upcoming cap on market share of UPI apps to 30%, which will come into effect by December 31 this year. This move comes as NPCI seeks to ensure healthy competition among UPI apps in India.